By Chris Hollingworth 
Arizona’s push towards establishing strategic digital asset reserves took a significant step forward as two bills were approved by the House Rules Committee on March 24. The bills, if passed into law, would pave the way for the creation of reserves comprising confiscated assets from criminal proceedings and newly invested public funds.
The Arizona House of Representatives, where Republicans hold a 33-27 majority, presents a favorable environment for the bills to pass. However, the final obstacle may lie with the state’s Democratic governor, Katie Hobbs, known for vetoing a significant portion of bills.
Arizona’s Two Crypto Bills Explained
The approved bills are the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025).
The Strategic Digital Assets Reserve Bill focuses on establishing a reserve of digital assets seized through criminal proceedings to be managed by the state treasurer. The treasurer’s investment activities are restricted to 10% of the fund’s total value annually, with the option to loan assets for increased returns while managing financial risks.
The Arizona Strategic Bitcoin Reserve Act specifically targets Bitcoin, allowing the state Treasury and retirement system to allocate up to 10% of available funds to Bitcoin investments. Furthermore, the bill enables the storage of the state’s Bitcoin reserve in a secure, segregated account within a potential federal Bitcoin reserve.
State Progress on Strategic Bitcoin Reserves
While Arizona is at the forefront of establishing state-based digital asset reserves, other states are making strides in this direction as well.
In Texas, the Senate passed the Strategic Bitcoin Reserve Bill (SB-21) on March 6. The bill awaits approval from the House and the governor. A new proposal aims to cap the reserve size at $250 million.
Utah recently passed Bitcoin legislation, though references to a strategic reserve were eliminated before finalization.
Furthermore, the Oklahoma House approved the Bitcoin Reserve Bill HB1203 on March 25, signaling progress as the bill moves to the state senate for further consideration.
As states navigate the landscape of digital asset reserves, the regulatory environment and potential implications remain key areas of interest for stakeholders and observers.
